Solved: Insolvent client sold their rental property under a short sale. The gain is $143K. Can an insolvency exclude the gain on the sale?

dan0616 · ‎12-06-2019

abctax55 · ‎12-06-2019

Yes.

The insolvency is determined prior to the short sale.

Search for DavidFogelCPA - his website has many, many helpful articles on the subject.

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"

abctax55 · ‎12-06-2019

Yes.

The insolvency is determined prior to the short sale.

Search for DavidFogelCPA - his website has many, many helpful articles on the subject.

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"

abctax55 · ‎12-06-2019

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"

Insolvent client sold their rental property under a short sale. The gain is $143K. Can an insolvency exclude the gain on the sale?